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Old Number Rings Up Business At Auto Shop | |
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SoHo NEWS & TIPS
Helping You Make the Most of Your Small Office/Home Office
SoHoTIPS.com
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Greetings,
Today we have a story about an entrepreneur who discovered
that taking over the phone line of a recently closed
competitor was a great way to drum up business. Read about
his experience and you may find that this might just work
for you!
Best,
Mandi
Be sure to visit the SoHo News and Tips blog!
SoHo News & Tips Blog
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Old Number Rings Up Business at Auto Shop
By SARAH E. NEEDLEMAN
While leafing through the Yellow Pages last fall,
entrepreneur Mark Bright saw an ad for a recently
dissolved competitor listing an out-of-service
phone number. On a hunch that readers would
continue dialing the number for some time, he
arranged for the line's outstanding calls to be
rerouted to his company. Since then, he says, he's
turned many unsuspecting callers into customers,
thereby boosting sales.
When a business folds, bargain hunters often pick
up whatever's leftover -- inventory, furniture,
equipment. But as Mr. Bright discovered, entrepre-
neurs may be able to scoop up more than just
tangibles.
Mr. Bright adopted his former competitor's digits
in October, and says his company, Northwest Auto
Services in Tacoma, Wash., now receives about 40
calls a day, double the number of calls from
before he added the number. As a result, monthly
sales for the auto- and small-engine repair shop
have increased by an average of $1,400, he says.
The largest growth occurred in March 2006, when
sales were $3,700 higher than in March 2005, he
notes, adding that his initial data show even
stronger revenue gains in April.
Mr. Bright says his former rival gave him the line
for free, despite his offer to pay for the transfer.
The local phone company agreed to reroute the calls
to Mr. Bright's shop after they confirmed he had
secured permission. The changeover took effect five
days later and Mr. Bright began paying the line's
$14 monthly fee.
Next, Mr. Bright coached his four employees on how
to greet confused callers who reach his shop. The
employees explain to callers that the company they
had tried to reach is out of business. They refer
callers seeking engine parts to a nearby retailer,
but also explain the services available at Northwest
Auto. Mr. Bright says callers are also asked to
provide a name and address so he can send them
promotions. Callers looking for engine-repair work
are encouraged to schedule an appointment with his
shop.
Continued below....
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According to Mr. Bright, the value of a business's
phone number depends on how long it was in use and
how much advertising exposure it received. He says
the number he acquired had been active for more
than 35 years, and he was willing to pay $2,000
for it, an amount he estimated as its value. "It
was like buying something for a quarter at a garage
sale and finding out later it's worth a heck of a
lot more," he explains. Mr. Bright says he plans to
keep the number for as long as callers expect to
reach its original owner. He anticipates a new
version of the phone book, without the ad, to come
out late in 2006 since he's received a new copy
every year around that time.
Entrepreneurs seeking to acquire a dissolved
competitor's number should act fast. Some phone
companies reassign business lines just three
months after they've been canceled, while others
hold them open for up to one year. Most phone
companies require you to obtain permission from a
phone line's original owner to make the switch.
Mr. Bright says he's now looking for other phone
numbers to absorb for his business. He's been net-
working with other local business owners to find
out if any competitors have recently closed or are
on the brink of closing. Recently, he says he
learned that the owner of a competitor located
less than a mile from his shop is struggling to
stay afloat. "I heard that the owner is home sick,
and his wife is tired and worn out from running
the business," he explains. Mr. Bright says he
called the owner's wife, relayed his understanding
of the company's status, and expressed interest in
purchasing its phone number should it dissolve. "I
said, 'If things get bad, give me a call.' " She
agreed to consider his offer, and then asked if Mr.
Bright was hiring, he says.
Mr. Bright says he's had less success with
traditional marketing strategies. For example, in
2005, he says he invested around $1,800 in coupons
for voucher books, doorknob flyers and ads on local
grocery-store carts that promoted his business, but
drew only eight new customers needing small repairs.
DID YOU KNOW?
Try to negotiate termination and breakup agreements early
in your relationship while everyone is still getting along
and interpersonal tensions are low. A more equitable
settlement is more likely at these times than later on when
the partners/owners are no longer on amicable speaking terms.
So what did you think about this issue? Drop me a line and let
me know at mailto:mandi@gophercentral.com
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